So far it has been a mixed day for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). In early afternoon trade the benchmark index has recovered from early declines and is higher by 0.1% to 5,472 points.
Acting as a drag on the market today have been four shares in particular that have dropped significantly. Here’s why they have been smashed:
Independence Group NL (ASX: IGO) shares are down 5% to $4.61 despite no news out of miner. Today’s decline is all the more surprising considering the rest of the gold miners have put on strong gains today following a slight rise in the gold price overnight. At present the spot gold price is US$1,194 an ounce, up by around 2% from last week’s lows.
Metals X Limited (ASX: MLX) shares have plunged a staggering 50% to 79.5 cents. Today’s decline is related to the company’s demerger, so don’t panic. Shareholders on the register at market close yesterday will receive one share in its separate ASX-listed gold entity Westgold Resources Limited for every two Metals X shares they hold. Westgold is expected to start trading on the ASX on Friday.
Orion Health Group Ltd (ASX: OHE) shares have dropped 8.5% to $1.85 after the release of its interim results. Although its performance is showing signs of improvement, the eHealth software company continues to post heavy losses. In the first half of FY 2017 the company made a NZ$19.5 million loss. Management expects a significant improvement in the second half, but investors don’t appear confident in this judging by the reaction today.
Vocus Communications Limited (ASX: VOC) shares are down an incredible 22% to $4.50 following the release of a trading update prior to the growing telco’s annual general meeting. For the full year revenue is expected to be approximately $1.9 billion, with EBITDA coming in between $430 million and $450 million. Although it was a largely disappointing update, the company does have a huge amount of potential in my opinion. Once the dust settles it may well be worth a second look. TPG Telecom Ltd (ASX: TPM) also fell sharply on the news.
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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.